Sch Schedule 1
Iron Ore (Rhodes Ridge) Agreement
Schedule 1 — Iron Ore (Rhodes Ridge) Agreement
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Western Australia act
What this law does (mechanics first)
Authorises, codifies and modernises the long‑running iron‑ore development agreement between the State of Western Australia and the Rhodes Ridge / successor Joint Venturers (the commercial parties). The original 1972 instrument (the Agreement) is retained as an operative instrument but has been extensively varied by a ratified 2024 Variation Agreement (Schedule 2) and earlier amendments (notably 2010). (See: Schedule 1; Schedule 2; s.5.)
The Act makes the Agreement (as varied) take effect as law under the Act and declares that its provisions operate despite other State laws where necessary (s.3; s.7). The 2024 variation is expressly ratified and authorised for implementation (s.5). The State is also given specific powers under the Agreement (s.6).
The 2024 Variation rewrites definitions, replaces many operational sections, updates approval processes and timeframes for development proposals, creates new tenure and infrastructure pathways (notably for railways), modernises royalty mechanics (how the State is paid), and imposes new reporting, community and local participation obligations on the Joint Venturers (see Schedule 2 throughout; selected highlights below). (See Schedule 2.)
Who is directly affected
The Joint Venturers (now identified in the Variation as Hamersley Resources Limited and Wright Prospecting Pty Ltd) and their guarantor. They are the parties required to submit proposals, construct infrastructure, operate mines/rail/ports and pay royalties and rents (Schedule 2, passim). (See Schedule 2: executed parties.)
The State of Western Australia and its Ministers and agencies — who obtain statutory approval powers, tenure powers, and ministerial discretions under the revised Agreement (s.5; Schedule 2 Clauses). (See s.5; Schedule 2 Clauses 3, 6, 9, 10 etc.)
Third parties with interests in the Pilbara (other miners, Integration Agreement proponents, local suppliers, local governments, native title holders) because the Variation creates routes for shared or integrated use of works (rail, port, power) and imposes local participation/community plan requirements on the Joint Venturers (Schedule 2, Sections 9A.03, 7.04, 7.05).
Why it matters (practical effects and levers)
Royalties and pricing: The law replaces and modernises the way royalties are calculated and administered. The Variation defines a contemporary f.o.b. (free‑on‑board) value, sets percentages for different product types (including a 5% rate for beneficiated ore and 7.5% for many bulk ores) and creates a process for the Minister to agree or determine fair market values in particular circumstances (Schedule 2, Sections 1 (definitions) and 21.01–21.06). Those provisions change how much the State receives and how companies price transactions.
Development and approval gating: The Joint Venturers must submit large, detailed proposals by fixed dates (for example, final detailed proposals for a 30 million tonnes per annum development by 31 December 2032, with optional interim proposals earlier) and then implement approved proposals (Schedule 2, Sections 5.02, 6.07, 6A.01). The Minister has statutory timeframes and explicit powers to refuse, defer or impose conditions on proposals on public interest grounds (Schedule 2, Sections 6.01, 6.02, 7.02). Some ministerial decisions are expressly non‑arbitrable. That concentrates decision power in the Minister and creates deadlines that drive company behaviour (prepare studies, make capital commitments by dates). (See Schedule 2, Sections 6.01(d); 6.04.)
Infrastructure and tenure pathways: The Variation creates a tailored special‑licence regime for heavy‑haul railways and “lateral access” roads (Schedule 2, Section 9A.05) and permits integrated use of works across other iron‑ore Government agreements (Section 9A.03). It also modernises the Mining Lease grant process (moving to the Mining Act 1978 framework) and allows for specified additional areas to be added to the Mining Lease subject to caps and ministerial approval (Schedule 2, Sections 9.01, 9A.01). Mechanically, this makes it easier for the Joint Venturers to build/operate rail and road corridors under bespoke licence terms, subject to approved proposals and native title processes.
Environmental, closure and native‑title connections: The Variation ties mine closure plans and rehabilitation to contemporary WA law (mine closure plans to be lodged and implemented; obligations survive cessation) and expressly aligns approvals with the Environmental Protection Act and native title processes (Schedule 2, Sections 9AB.01, 1.05A, 9.09). That imposes concrete compliance obligations (and potential costs) on the Joint Venturers.
Local and community obligations: The Variation requires the Joint Venturers to prepare and implement a Community Development Plan and a Local Participation Plan (supply/contracting/training) within fixed timeframes, to report on implementation, and to flow those obligations into contracts with third parties (Schedule 2, Sections 7.04 and 7.05). That changes procurement and workforce practices and creates additional reporting and compliance tasks.
Who pays and who decides (simple statement)
Who pays: the Joint Venturers (the mining companies) pay rents, royalties, charges for water/electricity where applicable and any agreed contributions to State‑provided works, plus the capital and operating costs of the infrastructure they are obliged to construct under approved proposals (various sections in Schedule 2 including 9.01, 16.01, 17, and 21.01–21.06).
Who decides: the Minister (and the Minister for Mines, and other identified State officers) have broad statutory powers to accept, amend, defer or refuse proposals; to determine certain values where a market price is not accepted; and to negotiate tenure and licence conditions (Schedule 2, numerous sections including 6.01–6.04, 9.01, 9A.05). Some of those decisions are explicitly non‑arbitrable; others can be referred to arbitration under the Agreement in defined circumstances (Schedule 2, Sections 6.04, 7.02, 32.01).
Official rationale and tactical testing (what the instrument claims and how it changes incentives/costs)
Stated purpose (from the Variation): modernise the Agreement so it reflects current regulatory frameworks, enable higher production and integration with other iron‑ore infrastructure, and secure community and local industry benefits (recitals; Schedule 2, Clauses 1, 7.04, 7.05).
Costs and incentives: the State gets more explicit royalty mechanisms and expanded powers to control tenure and infrastructure use (Sections 21.x; 9A.03; 9A.05). That increases State revenue certainty and control but also creates compliance costs for industry (new reporting, community plans, environmental/closure obligations). Companies gain clearer long‑term tenure and dedicated infrastructure licences (50‑year railway licence), which reduce construction/operational uncertainty but carry long‑term obligations and potential surrender/transfer conditions if the Agreement terminates (see Section 26.06 and Section 9A.05(f)(iii)).
Trade‑offs and discretion risks: the Minister has wide discretions (including some non‑arbitrable judgments about public interest and tenure approvals). That reduces transactional litigation risk in certain areas but increases regulatory and commercial risk for proponents because some outcomes turn on executive judgment rather than arbitration (Schedule 2, Sections 6.01(d), 7.02(a)(i), 10.04(b)). The Variation also embeds cross‑company integration options (shared use of rail, port, power) which can lower unit infrastructure costs if managed well but require robust governance and access‑rules to avoid hold‑ups.
Implementation burden and timing: strict submission deadlines and multi‑step approval processes (e.g. detailed proposals by 2032 for the 30Mtpa framework) create a schedule that drives company investment timing; failure to meet stages can expose the parties to termination rights (Schedule 2, Sections 5.02, 6.07, 6A.01). The Agreement also creates non‑standard tenure mechanics (special railway licences and lateral access licences) which require coordination with native title processes and other statutory consents (Schedule 2, Sections 9A.05(f)(x); 10.04).
Concentrated benefits / diffuse costs and substitution effects
Concentrated benefits to the Joint Venturers include secure, long‑dated mining and railway licences, specific procedural carve‑outs and the right to integrate infrastructure with other Government agreement proponents (Sections 9.01, 9A.03, 9A.05). These are material commercial advantages.
Diffuse costs fall on the wider public and other industry participants through potential use restrictions on land, ministerial discretion affecting new entrants, and the State’s long‑term commitments to water, roads, and other services where costs may be borne or underwritten by the Joint Venturers in part, and where resumption or licensing choices can have knock‑on effects for local authorities and users (Sections 10.05; 14.x; 15.x).
Implementation and compliance risk
Bottom line — behaviour change expected
The Joint Venturers must produce large, time‑bound technical and commercial proposals, accept tighter reporting, build and operate infrastructure under bespoke licences, and pay royalties calculated under modern f.o.b. rules (Schedule 2, Sections 5.02, 6A.01, 9A.05, 21.01–21.06).
The Minister and State executive will exercise stronger, explicit approval and tenure‑granting powers and will be a gatekeeper for integrated use of infrastructure; some of those decisions are not referable to arbitration (Schedule 2, Sections 6.01(d); 7.02(a)(i); 10.04(b)).
If you want, I can: (a) produce a timeline of the new deliverables/approval deadlines the Joint Venturers must meet under the 2024 Variation; (b) extract every ministerial non‑arbitrable decision and list the operational consequences; or (c) map the royalty calculation step‑by‑step using a worked numeric example. Indicate which you prefer and I’ll produce it next.
Want the full deep dive?
Zoe can write the in-depth analysis on top of the summary above: how it works, who it affects and what each part actually does.
Direct links to the current provisions in Iron Ore (Rhodes Ridge) Agreement Authorisation Act 1972.
Schedule 1 — Iron Ore (Rhodes Ridge) Agreement
Schedule 2 — 2024 Variation Agreement
Notes
Compilation table 191
Defined terms
An Act to authorise the execution on behalf of the State of an agreement with Rhodes Ridge Mining Co. Ltd., Hancock Prospecting Pty. Ltd., Wright Prospecting Pty. Ltd., and Texas Gulf Inc. relating to the exploration for, and the development and treatment of, iron ore and for incidental and other purposes.
This Act may be cited as the Iron Ore (Rhodes Ridge) Agreement Authorisation Act 1972.
In this Act —
2024 Variation Agreement means the agreement a copy of which is set out in Schedule 2;
current Agreement means the agreement referred to in section 2 as varied —
(a) from time to time in accordance with its provisions; and
(b) by the Iron Ore Agreements Legislation Amendment Act 2010 Part 9; and
(c) by the 2024 Variation Agreement.
[Section 1A inserted: No. 38 of 2024 s. 4.]
The execution by the Premier of the State of Western Australia acting for and on behalf of the State of an agreement in or substantially in accordance with the form set out in Schedule 1 is authorised.
[Section 2 amended: No. 38 of 2024 s. 5.]
When the agreement referred to in section 2 is duly executed by all the parties thereto, the agreement shall, subject to its provisions, operate and take effect as though those provisions were enacted in this Act.
(1) In this section —
Agreement means the agreement referred to in section 2 as varied from time to time in accordance with its provisions.
(2) Section 21.01 of the Agreement is varied —
(a) in paragraph (b) by deleting “seven and one half percentum (7½%)” and inserting —
5.625%
(b) in paragraph (c) by deleting “fifteen cents ($0.15) per ton.” and inserting —
5% of the FOB revenue (computed as aforesaid).
(c) in paragraph (d)(ii) by deleting “fifteen cents ($0.15) per ton.” and inserting —
5% of the FOB revenue (computed as aforesaid).
(3) Section 21.01(b), (c) and (d)(ii) of the Agreement as varied by subsection (2) operate and take effect despite —
(a) any other provision of the Agreement; and
(b) any other agreement or instrument; and
(c) any other Act or law.
(4) Nothing in this section affects the amount of royalty payable under section 21.01 of the Agreement in respect of any period before the commencement of the Iron Ore Agreements Legislation Amendment Act 2010 Part 9.
[Section 4 inserted: No. 34 of 2010 s. 21.]
(5) Nothing in this section affects the amount of royalty payable under section 21.01 of the current Agreement in respect of any period after the commencement of the Iron Ore Agreements Legislation Amendment Act 2024 Part 2.
[Section 4 amended: No. 38 of 2024 s. 6.]
(1) The 2024 Variation Agreement is ratified.
(2) The implementation of the 2024 Variation Agreement is authorised.
[Section 5 inserted: No. 38 of 2024 s. 7.]
The State has power in accordance with section 10.05(a) of the current Agreement.
[Section 6 inserted: No. 38 of 2024 s. 7.]
Sourced from the Western Australian Legislation website (legislation.wa.gov.au). Not the authorised version.
Western Australia
Iron Ore (Rhodes Ridge) Agreement Authorisation Act 1972
Western Australia
Iron Ore (Rhodes Ridge) Agreement Authorisation Act 1972
Contents
1A. Terms used 1
Execution of agreement authorised 1
Executed agreement to operate and take effect 2
Variation of Agreement to alter rates of royalty 2
2024 Variation Agreement ratified and implementation authorised 3
State empowered 3
Effect on other laws 3
Schedule 1 — Iron Ore (Rhodes Ridge) Agreement
Schedule 2 — 2024 Variation Agreement
Notes
Compilation table 191
Defined terms
Western Australia
Iron Ore (Rhodes Ridge) Agreement Authorisation Act 1972
An Act to authorise the execution on behalf of the State of an agreement with Rhodes Ridge Mining Co. Ltd., Hancock Prospecting Pty. Ltd., Wright Prospecting Pty. Ltd., and Texas Gulf Inc. relating to the exploration for, and the development and treatment of, iron ore and for incidental and other purposes.
This Act may be cited as the Iron Ore (Rhodes Ridge) Agreement Authorisation Act 1972.
In this Act —
2024 Variation Agreement means the agreement a copy of which is set out in Schedule 2;
current Agreement means the agreement referred to in section 2 as varied —
(a) from time to time in accordance with its provisions; and
(b) by the Iron Ore Agreements Legislation Amendment Act 2010 Part 9; and
(c) by the 2024 Variation Agreement.
[Section 1A inserted: No. 38 of 2024 s. 4.]
The execution by the Premier of the State of Western Australia acting for and on behalf of the State of an agreement in or substantially in accordance with the form set out in Schedule 1 is authorised.
[Section 2 amended: No. 38 of 2024 s. 5.]
When the agreement referred to in section 2 is duly executed by all the parties thereto, the agreement shall, subject to its provisions, operate and take effect as though those provisions were enacted in this Act.
(1) In this section —
Agreement means the agreement referred to in section 2 as varied from time to time in accordance with its provisions.
(2) Section 21.01 of the Agreement is varied —
(a) in paragraph (b) by deleting “seven and one half percentum (7½%)” and inserting —
5.625%
(b) in paragraph (c) by deleting “fifteen cents ($0.15) per ton.” and inserting —
5% of the FOB revenue (computed as aforesaid).
(c) in paragraph (d)(ii) by deleting “fifteen cents ($0.15) per ton.” and inserting —
5% of the FOB revenue (computed as aforesaid).
(3) Section 21.01(b), (c) and (d)(ii) of the Agreement as varied by subsection (2) operate and take effect despite —
(a) any other provision of the Agreement; and
(b) any other agreement or instrument; and
(c) any other Act or law.
(4) Nothing in this section affects the amount of royalty payable under section 21.01 of the Agreement in respect of any period before the commencement of the Iron Ore Agreements Legislation Amendment Act 2010 Part 9.
[Section 4 inserted: No. 34 of 2010 s. 21.]
(5) Nothing in this section affects the amount of royalty payable under section 21.01 of the current Agreement in respect of any period after the commencement of the Iron Ore Agreements Legislation Amendment Act 2024 Part 2.
[Section 4 amended: No. 38 of 2024 s. 6.]
(1) The 2024 Variation Agreement is ratified.
(2) The implementation of the 2024 Variation Agreement is authorised.
[Section 5 inserted: No. 38 of 2024 s. 7.]
The State has power in accordance with section 10.05(a) of the current Agreement.
[Section 6 inserted: No. 38 of 2024 s. 7.]
(1) The current Agreement operates and takes effect despite any enactment or other law.
(2) If a provision of the agreement referred to in section 2 or the 2024 variation agreement expressly or by implication purports to modify or exclude the application or operation of an enactment for a purpose or in relation to a person or thing, the application or operation of the enactment is modified or excluded for that purpose, or in relation to that person or thing, to the extent or for the period mentioned in the provision or necessary for the provision to have effect.
(3) To avoid doubt, it is declared that the provisions of the Public Works Act 1902 section 96 do not apply to a railway constructed under the current Agreement.
(4) This section does not limit or otherwise affect the application of the Government Agreements Act 1979.
[Section 7 inserted: No. 38 of 2024 s. 7.]
Schedule 1 — Iron Ore (Rhodes Ridge) Agreement
[s. 2]
[Heading inserted: No. 38 of 2024 s. 8.]
AN AGREEMENT MADE and executed this day of
One thousand nine hundred and seventy‑two
BETWEEN THE HONOURABLE JOHN TREZISE TONKIN, MLA, THE PREMIER OF THE STATE OF WESTERN AUSTRALIA acting for and on behalf of the said State and its instrumentalities from time to time (hereinafter called “the State”) of the first part RHODES RIDGE MINING CO. LTD. a company incorporated in the State of Delaware in the United States of America and having its executive offices situate at the 55th Floor, 200 Park Avenue New York in the United States of America and registered in the State of Western Australia and having its registered office there situate at the 2nd Floor, 7 Havelock Street West Perth, HANCOCK PROSPECTING PTY. LTD. a company incorporated in the State of Western Australia and having its registered office situate at the 14th Floor Lombard House, 251 Adelaide Terrace Perth in that State and WRIGHT PROSPECTING PTY. LTD. a company incorporated in the State of Western Australia and having its registered office situate at the 14th Floor Lombard House, 251 Adelaide Terrace Perth aforesaid (hereinafter called “the Joint Venturers” which expression shall where the context so admits or requires extend to and include the Joint Venturers jointly and each of them severally their and each of their successors and permitted assigns and appointees) of the second part and TEXAS GULF INC. a company incorporated in the State of Texas in the United States of America and having its executive offices situated at the 55th Floor, 200 Park Avenue, New York aforesaid and having an address for the service of notices in the State of Western Australia at the 2nd Floor, 7 Havelock Street, West Perth aforesaid (hereinafter called “the Guarantor” which expression shall where the context so admits or requires extend to and include the Guarantor and also its successors and assigns) of the third part being the Agreement referred to in Section 2 of the enabling Act.
WHEREAS:
(a) For some time prior to the execution hereof exploration and investigations have been carried out as to the possibility of the mining areas hereinafter defined containing large deposits of iron ore and as a result of such exploration and investigation the parties hereto believe that in the mining areas there are substantial deposits of iron ore having an average grade of 60% Fe or better and certain lesser deposits of limited size of higher grade that may after further study be found to be useable as blending ore in conjunction with lower grade iron ores which may exist within the mining areas or elsewhere.
(b) Research has been and is still being conducted by the Joint Venturers in both Australia and the United States of America with the object of establishing satisfactory ore crushing screening upgrading and pelletising procedures that could be used in the treatment of iron ore from the said deposits.
(c) The Joint Venturers have also prior to the execution hereof caused preliminary engineering studies to be made as to the construction of a railway between the mining areas and a port site in or in the vicinity of the area between Dampier and Cape Lambert and the development of such a port site.
(d) The said Rhodes Ridge Mining Co. Ltd. is a wholly owned subsidiary of the Guarantor which as the parent company has agreed to guarantee to the State performance by the said Rhodes Ridge Mining Co. Ltd. of its obligations hereunder upon and subject to the terms and conditions of the guarantee hereinafter contained.
THEREFORE IT IS MUTUALLY AGREED between the State and the Joint Venturers as follows: —
PART I
Preliminary
CLAUSE I
SECTION 1.01 DEFINITIONS In this Agreement unless the context otherwise admits or requires each of the following words has the meaning hereby respectively assigned to that word namely —
“apply”, “approve”, “approval”, “consent”, “certify”, “direct”, “notify”, “require” or “request” means apply, approve, approval, consent, certify, direct, notify, require or request in writing, as the case may be;
“assignee” means an associated company or a third party in whose favour the Joint Venturers jointly have or any of them has executed an assignment subletting or other disposition pursuant to paragraph (a) of Section 25.04 and includes an associated company or third party in whose favour an appointment has been made pursuant to paragraph (b) of Section 25.04.
“associated company” means —
(a) any company notified in writing by the Joint Venturers or any of them to the Minister which has a paid‑up capital of not less than two million dollars ($2,000,000) and is incorporated in the United Kingdom, the United States of America, or the Commonwealth of Australia and which —
(i) is promoted by the Joint Venturers or any of them for all or any of the purposes of this Agreement and in which the Joint Venturers or any of them hold not less than twenty percentum (20%) of the issued ordinary share capital or —
(ii) is related within the meaning of the term “subsidiary” in section (6) of the Companies Act 1961 to any company in which the Joint Venturers or any of them hold not less than twenty percentum (20%) of the issued ordinary share capital and —
(b) any other company which is nominated by the Joint Venturers or any of them and of which the Minister approves as an associated company for the purposes of this Agreement.
“commencement date” means the date on which this Agreement is executed by all parties hereto;
“Commonwealth” means the Commonwealth of Australia and includes the Government thereof for the time being;
“direct shipping ore” means iron ore which has an average pure iron content of not less than sixty percentum (60%) which will not pass through a one half (½) inch mesh screen and which is sold without concentration or other beneficiation other than crushing and screening;
“enabling Act” means the Act of Parliament of the said State entitled “Iron Ore (Rhodes Ridge) Agreement Authorization Act 1972”;
“export date” means the date on which the ship carrying the first shipment of iron ore products shipped by the Joint Venturers under this Agreement (other than iron ore shipped solely for testing purposes) sails from the port at which it has been loaded;
“financial year” means a year commencing on and including the 1st day of July;
“fine ore” means iron ore which has an average pure iron content of not less than sixty per cent (60%) which will pass through a one half (½) inch mesh screen and which is sold without concentration or other beneficiation other than crushing and screening;
“fines” means iron ore (not being direct shipping ore or fine ore) which will pass through a one half (½) inch mesh screen;
“f.o.b. revenue” means the sum of money remaining after deducting from the amount of the gross purchase price (net of any amounts which the purchaser is entitled to deduct from the gross purchase price by way of penalty or otherwise for any defect in quality quantity or delay in delivery) payable to the Joint Venturers or an associated company by a purchaser thereof in respect of a specified quantity of iron ore products sold by the Joint Venturers or the associated company to the purchaser for shipment beyond the Commonwealth the following items of cost namely — all export duties and export taxes payable on the iron ore products sold and shipped and all other costs and charges properly incurred and payable in respect of the iron ore products by the Joint Venturers or the associated company to the State or a third party between the point in time when the iron ore products are placed on ship at the Joint Venturers’ wharf and the point in time when the iron ore products are delivered to and accepted by the purchaser there being included in such other costs and charges —
(1) ocean freight;
(2) marine insurance;
(3) port and handling charges at port of discharge;
(4) costs of delivery from port of discharge to a smelter nominated by the purchaser;
(5) weighing, sampling, assaying, inspection and representation costs incurred on discharge or delivery;
(6) shipping agency charges;
(7) import taxes payable to the country of the port of discharge;
(8) demurrage incurred after loading and at port of discharge;
(9) such other costs and charges as the parties (having regard inter alia to such matters as the parties to and the bona fide nature of the transaction as the result of which the cost or charge was incurred) shall mutually agree to include or failing agreement as fixed by arbitration as hereinafter provided.
For the purpose of this definition —
(a) the Minister may from time to time in respect of any of the costs or charges mentioned in items (1) to (8) (inclusive) above incurred in relation to any particular shipment or sale notify the Joint Venturers in writing that he does not regard the cost or charge as being properly incurred and in that event should the Joint Venturers disagree with the Minister’s decision they may refer the matter in question to arbitration as hereinafter provided but unless and until it is otherwise determined such cost or charge shall be treated as being not properly incurred and if otherwise determined the State will refund to the Joint Venturers any royalty paid by the Joint Venturers on the basis that the charge was not properly incurred;
(b) unless and until the Minister determines that the same is a cost or charge coming within the category of those mentioned in item (9) above a cost or charge mentioned in any of the said items (1) to (8) (inclusive) which is directly or indirectly imposed upon or incurred by the Joint Venturers or an associated company pursuant to an arrangement entered into between the Joint Venturers and the State shall be treated as being not properly incurred;
(c) in the event of the parties failing to agree to the inclusion of a cost or charge which might be included pursuant to item (9) and referring the same to arbitration then unless and until it is otherwise determined such cost or charge shall be excluded but if it is determined that the same should be included the State will refund to the Joint Venturers any royalty paid by reason of the same having been excluded.
“iron ore” means iron ore from the mineral lease;
“iron ore concentrates” means products (whether in pellet or other form) resulting from secondary processing but does not include metallised agglomerates;
“iron ore pellets” means iron ore in pellet or other form produced by pelletisation or a more advanced reduction or other treatment or process from iron ore mined on the mineral lease;
“iron ore products” is an inclusive term covering iron ore of all grades obtained from the mineral lease and also all products produced by secondary processing any part of such iron ore;
“Joint Venturers’ wharf” means any wharf utilised by the Joint Venturers for the purpose of shipping iron ore products produced as the result of the operation of this Agreement and whether the same be a wharf constructed by or on behalf of the Joint Venturers a wharf used by the Joint Venturers in conjunction with another or
This is an opening excerpt, not the complete document.